Economics problems

The economy of Pakistan has now a day facing different challenges regarding
its economy and if these challenges are not solved in time, the country will be
then stuck in an abyss critical situation which cannot be handle in the future.
The new government is looking towards the solution of this critical situation
of the economy of Pakistan. Current government is facing some serious economic
problems like increasing external and internal debt, increase in unemployment,
decrease in exports, increase in imports, decrease in investment opportunities,
low tax collection, worst policy implementation, check and balance on the
current projects. To do this the government has to decrease interest rate which
will leads towards increase in investment. Collection of taxes should be made
in such a way that direct taxes should be increase and the indirect taxes
should be decrease as Pakistan main source of revenue is indirect taxes which
will lead to increase in the general price level of different commodities.
Steps should be taken to decrease unemployment. Use of technology, governance
and decentralization.

Interest Rate

Government should decrease the interest rate to the public so that it will
become easier for the investors to brought out the money from the banks and
invest it in their own businesses. It will also help to increase the aggregate
demand of the economy and also helps in controlling the current unemployment
situation in the country. In this way the GDP and the living way of people will
improve.

Tax collection

For the past four years Pakistan tax revenue has been increased to 81
percent of the tax revenue. The GDP growth rate is reaches to 5.4% which is the
highest and the first time over a decade. The government should allow FBR to
work transparently, there should be no political interference, and this is will
help to increase the direct taxes in the country in a fair manner. Increase in
the transparency of FBR will also help to increase the confidence of the tax
payers on the government.

Unemployment

Pakistan is among those countries which have young labor force which is
unemployed.

Better suggestion is that to provide knowledge and skills to the unemployed
young graduates. In 2001 worker allowances were less than a billion dollars.
Today our worker allowances reaches to 7 to 8 billion dollars. Currently it can
be multiplied by three or five times if we have well educated and skilled labor
force.

Technology

Technology has been spreading in the world like a fire. 5 years ago, not
every individual had mobile phone but today 105 million Pakistanis have mobile
phones today. Technology especially information technology can be use for the
betterment of the social and the economics problems of Pakistan.